Cap 112 s 16A Special payment under an approved retirement scheme allowable as a deduction (Inland Revenue Ordinance)

Contents of Section

Chapter:	112	Title:	Inland Revenue Ordinance	Gazette Number:	E.R. 1 of 2012
Section:	16A	Heading:	Special payment under an approved retirement scheme allowable as a deduction	Version Date:	09/02/2012

(1) Subject to section 17(1)(k), where a person carrying on a trade, profession or business in Hong Kong makes a payment which is either- (Amended 7 of 1986 s. 12)

(a) a contribution, other than an ordinary annual contribution, to a fund duly established under a recognized occupational retirement scheme; or

(b) a premium, other than an ordinary annual premium, in respect of a contract of insurance under a recognized occupational retirement scheme; or (Amended 4 of 1998 s. 6)

such payment shall, to the extent that it is made in respect of individuals employed by such person for the purposes of producing profits in respect of which he is chargeable to tax under this Part and that it is not excessive in view of all the relevant circumstances, be deemed to be an expense wholly and exclusively incurred in the production of such profits and shall be allowed as a deduction therefrom in accordance with subsection (2). (Amended 76 of 1993 s. 6)

(2) For the purpose of making the deduction provided for in subsection (1), one fifth part of the payment shall be deemed to have been expended during the basis period in which the payment was actually made and the remaining 4 parts shall be deemed to have been expended at the rate of one part in the basis period for each of the succeeding 4 years of assessment:

Provided that in no case shall the total amount of the deductions exceed the amount of the payment.

(3) For the purposes of subsection (1)(c), contributions are regular contributions if they are made to the mandatory provident fund scheme at regular intervals and are either of similar or substantially similar amounts or of amounts calculated by reference to a scale or a fixed percentage of a person's salary or other remuneration. (Added 4 of 1998 s. 6)

(Replaced 49 of 1956 s. 12)